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| Posted by: Paul Donovan | Tags: Paul Donovan

  • Headline data today (such as it is) is US Michigan consumer sentiment. The impact of the presidential race here is unclear – it is a distraction from financial markets, but the tone of the campaign has been less than positive (which may impact sentiment more than economic reality does).
  • Michigan sentiment includes consumer inflation expectations, one of the more meaningless economic data releases on the planet. Consumers are universally terrible at predicting inflation, and unless the labour market is exceptionally tight inflation expectations have no bearing on other economic variables.
  • German PPI inflation is due. This tends not to get the attention it deserves – as much of consumer price inflation is actually prices that companies do not control, PPI gives a better measure of corporate pricing power – albeit oil and embedded oil will distort the data.
  • There is a trio of Fed speakers on the agenda (including NY Fed President Dudley on supervision). Schaeuble of Germany is also scheduled to speak.